The management principles laid down by the family were: Its plant located at Mumbai, Maharashtra State, had a capacity of tonnes per month. The net profit margin on the biscuit business at 25 per cent was attractive. It would inspect the production processes of KCPL and recommend changes in processes and equipments, if needed. Some of them were set up in the backyards of entrepreneurs under unhygienic production conditions. The manufacturers had to pay an excise duty of 15 per cent and sales tax of seven per cent of sales value.
The size of casual work force depended on the volume of production. The case writers express their gratitude to the members of the family for their co-operation in writing this case. The market response to Good Health biscuits was not very encouraging. Shah answered in the affirmative. The large institutions preferred the other three brands. Pearson relied on the expertise of KCPL. Its officers inspected the quality of the biscuits before dispatch.
It had desired to expand its supply to the market by subcontracting orders to other manufacturers. The disadvantage was in the possible loss of independence.
However, competition increased with the start of 70 units in the unorganized sector between and The business become unattractive and uncompetitive. Induction of Family Members Mohan Kumar had six sons.
The daily production varied between two cass to six tonnes per day.
The customers perceived A-One biscuits as health and energy-providing biscuits. It had not changed its prices in the last three years.
It stjdy outsource the supply from small and medium scale units by providing technical support.
The initial order from Pearson stidy for 50 tonnes per month between May and March Hence, between and its sales declined. Click here to sign up. These practices had enabled the company to minimize wastage and improve responsiveness to customer’s orders.
Would there be interference? The sugar crystals were converted into sugar syrup by dissolving the crystals in water and heating the solution. The syrup was mixed with maida and vanaspathi in small mixers. The changes had to be carried out by KCPL at its own cost.
APL had stressed in its advertisements that its biscuits contained milk solids. The workers were from the local region. They either sold unbranded biscuits or sold them with brand names sounding similar to the leading brands.
It had its production plant in Chennai, Tamil Nadu State.
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The case writers express their gratitude to the members of the family for their co-operation in writing this case. The hot solution was cooled to room temperature and stored in cylinders. It also decided that it would not set up its own manufacturing facility.
Pearson relied on the expertise of KCPL. Canteens of institutions bought biscuits by floating competitive tenders.
It had introduced quality control procedures based on Japanese practices. The Proposal APL offered to place an initial order for producing 70 tonnes of Glucose biscuits per month.
Ztudy would they like to give to their sons when they grew up? Decision making within the family was seen by them as participative. The families in metropolitan cities preferred A- One or International.
Technology and Operations in Biscuit-making involved preparation of dough by mixing maida, sugar syrup, vanaspathi, and certain preservative chemicals in a given proportion; moulding the dough to get various shapes and sizes; and baking the shapes kcpo get ready-to-eat biscuits.
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It did not provide any technical guidance. It also agreed to allow KCPL to run its existing line of business.
They were seen as high-priced biscuits without any additional benefits.